PASPA-Associated Lawsuit In New Jersey Nearing End

A ruling on the long-standing lawsuit may be coming soon.
The New Jersey Thoroughbred Horsemen’s Association initially sought $150 million in lost revenue as well as the $3.4 million bond applied by the leagues.
Judge Freda Wolfson denied the claims for lost revenue, but a ruling on the $3.4 million could come soon.

TRENTON, N.J. – The long saga of the New Jersey Thoroughbred Horsemen’s Association’s lawsuit against major sporting leagues may finally be nearing its end.

After months of back and forth between the major leagues and the Association, a final verdict on the case is expected within the week.

The initial claim for $150 million has gone through multiple courts and has failed to convince judges of the validity of the losses in question. This historic case could have an effect on future potential lawsuits.

Case Closed

The final verdict is expected soon, as all parties involved have apparently reached an agreement that satisfied everyone.

The expected outcome is the initial $3.4 million that was placed in a trust fund by the major leagues will be granted plus interest over the years to the Association.

Both the major leagues as well as Supreme Court has stated there is a lack of substantial evidence that the Association should be granted the $150 million from missed potential revenue.

“The New Jersey Thoroughbred Horsemen’s Association, National Collegiate Athletic Association, National Basketball Association, National Football League, National Hockey League, and Major League Baseball have resolved all disputes arising out of their litigation concerning the legalization of sports gambling in the State of New Jersey,” said Anthony Dreyer, an attorney representing the leagues. “The parties are pleased to conclude this matter.

The lawsuit has been ongoing for months and has gone through multiple courts. It is no surprise that everyone involved is ready to move on from this long-winded proceeding.

The Back Story

The back story is that in 2014, New Jersey approved sports betting and the New Jersey Thoroughbred Horsemen’s Association moved to launch a sportsbook at the Monmouth Park Racetrack.

Major sporting leagues, including the NBA, MLB, NHL, and NFL moved to block the launch of the sportsbook by getting a restraining order against the move. The reason being that PASPA was still a federal law and it barred states from launching legal sports betting.

The restraining order lasted a month, and the leagues put a trust fund of $3.4 million in that would account for any lost revenue should the Association be granted their sportsbook.

The federal courts overturned New Jersey’s legalization as illegitimate, and New Jersey sports betting remained outlawed until 2018 when PASPA was repealed by the U.S. Supreme Court.

What This Means For Other Lawsuits

One of the biggest worries the leagues faced was if other similar lawsuits were to come as a result of this major case.

The leagues sought an early dismissal of the case, stating the claims had no legal basis. Should the case had been dismissed, other similar lawsuits would also be dead on arrival.

On the flip side, if the Association managed to convince a court of the validity of its claims, then other lawsuits would use this case as a basis for their own claims.

While the final payouts have not been disclosed, it is believed that the Association was unable to convince any judge that they deserved compensation for the potential lost revenue.

All parties will soon be able to move on from this long-standing lawsuit.

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Giovanni Shorter

Coming from a background in narrative-based writing, Giovanni strives to write stories that will keep the reader engaged. Although he does pride himself in being accurate, how the story is told is also very important to him. When he’s not keeping readers up to date on sports betting laws and legislation, you can find him writing and recording music, playing videogames, or engaged in heated sports debates with his friends.